Architecture diagram
A branch flow through an SD-WAN fabric
Branch traffic is classified at the edge device, steered per application onto a contracted circuit, local broadband or a cellular standby, and carried inside one encrypted overlay to a data centre or to a separately purchased cloud security service. The orchestrator holds the policy; the edge makes each choice locally.
Step 1 / 5Classify the traffic at the branch
Architectural planes
Annotations
The same architecture, read top to bottom
Retail branch
MANAGEDOperated or administered on the enterprise's behalfBranch staff · SD-WAN edge device · Path choice
- PersonBranch staffERP client and a sanctioned SaaS suite
- API or gatewaySD-WAN edge device
- Application classification
- Loss, latency and jitter probes
- Per-application path selection
- Overlay tunnel encryption
- Segment separation
- Policy decisionPath choiceWhich link this flow takes, decided locally
Card payment segment
INTERNALOperated by the enterprise itselfCard payment terminal
- DeviceCard payment terminalKept in its own segment
Guest wireless
UNTRUSTEDNot controlled and not trusted; anyone may be present on itCompromised device on guest wireless
- AdversaryCompromised device on guest wireless
Reaches this boundary
- ContextSD-WAN orchestrator to SD-WAN edge deviceApplication policy pushed to every edge
Within this boundary
- RequestBranch staff to SD-WAN edge deviceERP, SaaS and web traffic from the branch LAN
- RequestCard payment terminal to SD-WAN edge devicePayment traffic, kept in its own segment
- RequestSD-WAN edge device to Path choiceClassified flow presented for steering
- AttackCompromised device on guest wireless to Card payment terminalProbes the branch LAN for the payment terminal
- AttackCompromised device on guest wireless to Path choiceIts outbound traffic is steered like any other flow
- BlockedCompromised device on guest wireless stopped at SD-WAN edge deviceDenied: guest wireless has no route to the payment segment
Carrier transport
UNTRUSTEDNot controlled and not trusted; anyone may be present on itContracted circuit · Local broadband · Cellular standby
- DeviceContracted circuitPredictable, metered, expensive
- DeviceLocal broadbandCheap capacity, variable loss
- DeviceCellular standbyHeld for failover only
Reaches this boundary
- RequestPath choice to Contracted circuitERP flows placed on the contracted circuit
- RequestPath choice to Local broadbandSaaS and web exit locally
- RequestPath choice to Cellular standbyFailover when both circuits degrade
Regional data centre
INTERNALOperated by the enterprise itselfData centre edge device · ERP application · Order records
- API or gatewayData centre edge deviceTerminates the overlay tunnel
- ApplicationERP application
- Data storeOrder records
Reaches this boundary
- RequestPath choice to Data centre edge deviceOne encrypted overlay tunnel to the data centre
- RequestContracted circuit to Data centre edge deviceCarries the tunnel across the carrier network
- RequestCellular standby to Data centre edge deviceCarries the same tunnel over cellular
Within this boundary
- RequestData centre edge device to ERP applicationReaches the ERP application
- RequestERP application to Order recordsApplication reads order records
Public internet
UNTRUSTEDNot controlled and not trusted; anyone may be present on itInternet destination
- ApplicationInternet destination
Cloud security service
THIRD PARTYOperated by another organisation under its own termsCloud security service
- Security controlCloud security serviceA separate purchase, not part of the fabric
- Secure web gateway
- Firewall as a service
- TLS inspection
- Data loss prevention
- Security controlCloud security serviceA separate purchase, not part of the fabric
Sanctioned SaaS
THIRD PARTYOperated by another organisation under its own termsSanctioned SaaS suite
- ApplicationSanctioned SaaS suite
Reaches this boundary
- RequestPath choice to Cloud security serviceInternet-bound traffic steered to inspection
- RequestLocal broadband to Cloud security serviceCarries the tunnel to the security service
Within this boundary
- RequestCloud security service to Sanctioned SaaS suiteInspected SaaS traffic
- RequestCloud security service to Internet destinationInspected web traffic
Vendor-hosted control plane
MANAGEDOperated or administered on the enterprise's behalfSD-WAN orchestrator · Network operations
- Security controlSD-WAN orchestratorHolds one policy for every site
- Security controlNetwork operationsPath and application performance
Reaches this boundary
- TelemetrySD-WAN edge device to SD-WAN orchestratorLoss, latency and jitter per circuit
Within this boundary
- TelemetrySD-WAN orchestrator to Network operationsPath changes and per-application performance
Legend
Participants
- PersonSomeone making a request, and the identity they assertCircle with a person mark
- DeviceAn endpoint the request is made from, with its own postureRounded rectangle with an inset panel
- ApplicationAn application that serves or holds dataRounded rectangle with a panel stacked behind it
- API or gatewayA network endpoint that terminates or forwards connectionsCapsule marked API
- Data storeWhere data restsCylinder
- Security controlA protective control, and the control plane's own observationRounded octagon with a check mark
- AdversaryA hostile party attempting somethingDiamond marked with an exclamation mark
- Policy decisionWhere policy is evaluated and one verdict is reachedDiamond with a split-path mark on its trailing point
Relationships
- RequestTraffic asking to reach a destinationSolid line. Filled arrowhead.
- TelemetryEvents reported onward for observation — observation, not controlDotted line. Small open arrowhead.
- ContextA signal that informs a decision without carrying the request itselfDash-dot line. Open chevron.
- AttackAn attempt made by an adversaryShort-dashed heavy line. Barbed open arrowhead.
- BlockedAn attempt terminated by the control the line starts fromHeavy line that stops short of its target. Perpendicular bar, and deliberately no arrowhead: the attempt did not arrive.
Boundaries
- Internal boundaryOperated by the enterprise itselfSolid outline. Badge reads INTERNAL.
- Managed boundaryOperated or administered on the enterprise's behalfDashed outline with a subtle wash. Badge reads MANAGED.
- Third party boundaryOperated by another organisation under its own termsDash-dot outline. Badge reads THIRD PARTY.
- Untrusted boundaryNot controlled and not trusted; anyone may be present on itDotted outline with a hatched leading corner. Badge reads UNTRUSTED.
Text alternative
The request, step by step
Classify the traffic at the branch
Everything at the site enters one edge device, which identifies the application behind each flow. Identification is the weakest link in the chain: it depends on inspection, certificate names or vendor signatures, and it degrades as traffic becomes more opaque.
- Request: Branch staff to SD-WAN edge device, “ERP, SaaS and web traffic from the branch LAN”
- Request: Card payment terminal to SD-WAN edge device, “Payment traffic, kept in its own segment”
- Request: SD-WAN edge device to Path choice, “Classified flow presented for steering”
Emphasised at this step: SD-WAN edge device.
Choose a link for each application
The edge compares live circuit measurements against the policy it holds and places each flow on a link. The ERP client takes the contracted circuit; SaaS and web traffic exit locally instead of being carried back to the data centre first.
- Request: Path choice to Contracted circuit, “ERP flows placed on the contracted circuit”
- Request: Path choice to Local broadband, “SaaS and web exit locally”
Emphasised at this step: Path choice.
Carry one overlay over mixed transport
Logically there is a single encrypted overlay between the edges. The transport plane underneath it is several unrelated circuits, and the overlay hides which one is in use at any moment from everything above it.
- Request: Path choice to Data centre edge device, “One encrypted overlay tunnel to the data centre”
- Request: Path choice to Cloud security service, “Internet-bound traffic steered to inspection”
- Request: Contracted circuit to Data centre edge device, “Carries the tunnel across the carrier network”
- Request: Local broadband to Cloud security service, “Carries the tunnel to the security service”
Emphasised at this step: Data centre edge device.
Reach the destinations, with inspection bought separately
Private traffic arrives at the data centre and reaches its application. Internet and SaaS traffic arrives at a cloud security service that inspects it. The fabric steered that traffic; it did not inspect it, and the service doing so is a different product.
- Request: Data centre edge device to ERP application, “Reaches the ERP application”
- Request: ERP application to Order records, “Application reads order records”
- Request: Cloud security service to Sanctioned SaaS suite, “Inspected SaaS traffic”
- Request: Cloud security service to Internet destination, “Inspected web traffic”
Emphasised at this step: Cloud security service.
Fail over, then report
When both circuits degrade, flows move to the cellular standby without changing the overlay or the segment they sit in. Measurements and path changes go back to the orchestrator, which is also the only place the policy itself can be edited.
- Request: Path choice to Cellular standby, “Failover when both circuits degrade”
- Request: Cellular standby to Data centre edge device, “Carries the same tunnel over cellular”
- Telemetry: SD-WAN edge device to SD-WAN orchestrator, “Loss, latency and jitter per circuit”
- Context: SD-WAN orchestrator to SD-WAN edge device, “Application policy pushed to every edge”
- Telemetry: SD-WAN orchestrator to Network operations, “Path changes and per-application performance”
Emphasised at this step: SD-WAN orchestrator.
Attempts shown, and where each one stops
Compromised device on guest wireless attempts:
- Attack: Compromised device on guest wireless to Card payment terminal, “Probes the branch LAN for the payment terminal”
- Attack: Compromised device on guest wireless to Path choice, “Its outbound traffic is steered like any other flow”
- Terminated here by SD-WAN edge device — “Denied: guest wireless has no route to the payment segment”. The line stops short and takes a bar, not an arrowhead.
Annotations
This line is logical, not physical
Relationship — Request: Path choice to Data centre edge device, “One encrypted overlay tunnel to the data centre”
Nothing travels along it. It represents a tunnel whose real path is whichever transport-plane link the edge selected, and it exists so that applications and routing above the fabric stop caring which circuit is alive. Hide the transport plane and this line still describes the network correctly.
Why nothing terminates this attempt
Relationship — Attack: Compromised device on guest wireless to Path choice, “Its outbound traffic is steered like any other flow”
The overlay classifies this flow, encrypts it and gives it a good path, exactly as it would for legitimate traffic. No control in the fabric opens it, so there is no counterpart ending the attempt. Anything that would stop it lives in the separately purchased service further along.
The one refusal the fabric can genuinely make
Relationship — Blocked: Compromised device on guest wireless stopped at SD-WAN edge device, “Denied: guest wireless has no route to the payment segment”
The bar means the attempt ended here rather than reaching its target. Segment separation is enforced by the edge itself, which is why this refusal is real. Its scope is narrow: it decides which segments may reach each other, not whether the traffic inside a permitted segment is hostile.
Central policy, local decision
Component “Path choice”
The orchestrator distributes intent, such as which class of application prefers which class of link. The choice for a given flow is made here, from measurements only this device has. That split is why behaviour differs between sites under identical policy.
This boundary is somebody else's product
Boundary “Cloud security service” (third party)
Converged offerings bundle it, and the bundle is still two services with two policy models. Crossing this boundary is where inspection starts, so an internet exit that does not cross it is uninspected however good the path selection is.
Encryption does not promote the carrier
Boundary “Carrier transport” (untrusted)
Tunnelling over a circuit stops the carrier reading the payload. It does not make the circuit dependable, private in its metadata, or independent of the other circuit sold by the same provider. The badge stays as it is.
A single control plane is a single dependency
Component “SD-WAN orchestrator”
Edges normally keep forwarding on their last known policy when this is unreachable, which is the right default and also means no change can be made during the outage. Establish the hold behaviour and the local override in writing before it matters.
The short version
Three things to take away
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It decides the path, not the permission
SD-WAN answers how traffic reaches a destination: which link, in which order, with what failover. Whether that traffic should be allowed at all is a different question, answered by a different control.
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Central policy, distributed forwarding
One orchestrator holds the application policy for the whole estate, but every edge device makes its own per-flow choice from local link measurements. Both halves have to be understood to predict behaviour.
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An encrypted tunnel is not inspection
Site-to-site encryption stops the carrier reading the traffic. It says nothing about what is inside the traffic, and a compromised host at either end gets the same protected path as everything else.
Mechanics
How it works
Software-defined WAN puts a policy-driven overlay between a site’s applications and the circuits that actually carry them. An edge device at each location identifies the application behind each flow, measures the links available to it, and places the flow on whichever one the policy prefers. The result is one logical fabric spanning contracted circuits, consumer broadband and cellular, with the differences between them absorbed rather than exposed.
Two properties do most of the work. The first is the split between overlay and underlay: applications and routing see a stable encrypted overlay, while the transport beneath it changes without their involvement. The second is the split between central policy and distributed forwarding: an orchestrator holds one policy for the whole estate, but each edge decides per flow from measurements only it can take. Both halves have to be understood together, because identical policy produces different behaviour at two sites with different circuits.
The security claim needs care. SD-WAN is sold routinely as a security improvement, and its actual contribution is narrow: encrypted transport between sites, and segment separation enforced at the edge. Both are real, and neither is inspection. The fabric does not open the traffic it carries, does not know who the user is, does not evaluate a request against a policy about people, and does not see what happens inside a SaaS tenant. An encrypted tunnel between two sites also does nothing about a compromised host at one end, which now has a protected, prioritised path.
This is why the networking half is usually paired with a security service edge, and why the pairing is the interesting part rather than the acronym on top of it. Local internet exit is a good example: removing the trip back to a central firewall is a genuine improvement in latency, and it removes that firewall from the path. Whether the site ends up safer depends entirely on what now inspects that exit. NIST SP 800-215 treats the wide-area fabric and the security services as distinct components of the network landscape for exactly this reason, and reading a proposal that way makes the gap easy to find.
One concrete situation
A retail branch loses circuit quality at peak trading
Retail branch, Tuesday lunchtime peak
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Context
The branch has a contracted circuit, consumer broadband and a cellular modem. Card payment terminals, the ERP client and a sanctioned SaaS suite all share the same edge device.
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Decision
Policy from the orchestrator says the ERP client takes the contracted circuit while SaaS and web traffic exit locally, and card payment traffic stays in its own segment wherever it goes.
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Enforcement
Loss on the contracted circuit crosses the threshold, so the edge moves the ERP flows to broadband and then to cellular, keeping the same encrypted overlay tunnel and the same segment separation.
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Observation
The orchestrator records the measurements, the path changes and which applications were affected, and network operations sees that the outage was a link problem and not an application one.
Scope, in both directions
What it covers, and what it does not
Both lists are authored and required. A control's limits are part of what it is, so the second panel is not a caveat appended to the first — it is the other half of the answer.
What it protects
- Confidentiality of site-to-site traffic over untrusted transport
- Application performance across mixed and unreliable links
- Continuity when one underlay circuit degrades or fails
- Separation between traffic classes sharing one physical link
- The blast radius of a flat routed estate, where segments are enforced
What it does not solve alone
- Threats inside the traffic it carries: it inspects no payloads
- Who the user is: it makes no authentication decision
- Access to one named application rather than a network path
- Data leaving through a channel it merely forwards
- SaaS configuration, sharing and tenant risk
- A compromised endpoint at either end of an encrypted tunnel
- Availability of the orchestrator it depends on for policy change
Frequently confused
Adjacent terms, and how they relate
| Term | Primary job | Relationship |
|---|---|---|
| Secure access service edge (SASE) | Converged connectivity and cloud-delivered security | SD-WAN is the networking half. A SASE service is SD-WAN plus security service edge under one policy, and buying only the SD-WAN half leaves the security half unbought. |
| Security service edge (SSE) | Cloud-delivered inspection and access control | The complement to SD-WAN, and the thing that actually inspects the traffic SD-WAN steers. The two are often sold together and are still separable. |
| Zero trust network access (ZTNA) | Brokered access to individual private applications | Where SD-WAN gives a site a route to a network, ZTNA gives a user a session with one application and no route at all. They solve different problems and are frequently confused. |
| MPLS and traditional WAN routing | Contracted, carrier-managed site connectivity | Usually the underlay SD-WAN runs on rather than the thing it removes. Most estates keep some contracted capacity and steer selectively onto it. |
Explained in full
Side by side, in one shared diagram
Before procurement
What to settle first
Deliberately unnumbered: these are the questions to answer, not a sequence to work through in order.
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Contract the underlay before designing the overlay
Failover only works if the alternative circuits are genuinely independent. Check whether the broadband and the contracted circuit share a duct, a cabinet or an upstream provider.
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Define what application awareness means here
Classification degrades as more traffic becomes encrypted and domain-fronted. Establish whether identification relies on inspection, certificate names, address lists or vendor cloud signatures, and how each fails.
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Design segments as a security control, not a tag
Segment separation is the genuine security contribution, so it needs the same rigour as a firewall policy: named segments, an owner, an explicit inter-segment rule set and a review cycle.
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Decide where inspection happens
Local internet exit removes the backhaul and also removes the central firewall from the path. Name the service that inspects each exit, and treat every uninspected exit as a deliberate accepted risk.
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Plan for the orchestrator being unreachable
Confirm what edges do with the last known policy, how long they hold it, whether an operator can change anything locally, and who is accountable when the vendor's control plane is the outage.
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Agree the evidence the fabric produces
Path changes, link measurements and per-application flow records are operational gold and weak security evidence. Check retention, export and whether the events correlate with identity and endpoint logs.
Sources
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NIST SP 800-215
Guide to a Secure Enterprise Network Landscape
Places SD-WAN inside the wider enterprise network landscape alongside cloud-delivered security, and treats the two as separate services.
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NIST SP 800-207
States that zero trust protects resources rather than network segments, which is why an encrypted overlay between sites is not an access decision.
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NIST SP 1800-35
Implementing a Zero Trust Architecture
Reference implementations that show where a policy enforcement point sits relative to the wide-area transport carrying the traffic.
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CISA v2.0
Its network pillar separates macro-segmentation and encrypted transport from the traffic inspection an SD-WAN fabric does not perform.